IOC losing Rs 2,500 cr/month on fuel sales

New Delhi, May 28 (UNI) Integrated oil marketing company IndianOil Corporation today said it is losing Rs 2,500 crore every month on selling its products below the imported cost.

''We are losing Rs 6.13 a litre on petrol, Rs 3.76 per litre on diesel, Rs 14.67 a litre on kerosene and Rs 167.14 per LPG cylinder,'' IOC chairman Sarthak Behuria told reporters here.

The company is losing about Rs 80-85 crore a day on fuel sales, he said adding that the burden sharing scheme involving upstream firms like ONGC bearing a part of the under-realisation and government issuing oil bonds will continue this fiscal.

''The total net under recovery on account of price under realisation on petrol, diesel, PDS kerosene and LPG in the financial year 2006-07 is Rs 2,190 crore, after considering the compensation received in the form of oil bonds, subsidy sharing by upstream companies, Centre and discounts from refineries,'' said Mr Behuria.

''Our refining margins are good and the rupee appreciation has helped us a lot in improving the numbers. If it continues, the company is set to reap benefits in the coming quarters,'' Mr Behuria said adding that the current refining margins stands at 4.2 dollars per barrel.

IOC received Rs 13,943 crore in oil bonds from the government and about Rs 11,800 crore from ONGC/GAIL.

UNI